The sukuk offers a fixed coupon rate of 5.06% and will mature on September 30, 2031.
Dubai: The UAE Federal Government’s second retail treasury sukuk began trading on Nasdaq Dubai on October 1, giving individual investors another opportunity to invest in government-backed Islamic securities with a minimum investment of Dh1,000.
The UAE Gov Retail T-Sukuk 5.06% 30Sep2031 was admitted to trading at 10am Dubai time under the symbol UAESUKUK0931. The issuer is UAE Federal Government Sukuk Programme Ltd, with the total issue valued at Dh50 million.
What do investors get?
The sukuk offers a fixed coupon rate of 5.06% and is due to mature on September 30, 2031. Profit distributions are made twice a year, on March 30 and September 30.
For an investor holding the minimum Dh1,000 denomination, this translates to approximately Dh25.30 every six months. Over the five-year term, the distributions would total about Dh253, with the Dh1,000 principal repaid at maturity.
One of the key features is its relatively low entry threshold. With units starting at Dh1,000, the sukuk is aimed at individual investors rather than being limited to large institutional participants. It provides retail savers with access to a fixed income stream backed by the UAE Federal Government at a relatively modest investment amount.
Tradable before maturity
As the sukuk is listed on Nasdaq Dubai, investors do not necessarily have to hold it until its 2031 maturity date. Holders can sell their sukuk on the exchange if they need access to their funds earlier.
However, the market price may fluctuate before maturity depending on factors including prevailing market yields. This means investors selling early could receive more or less than the original Dh1,000 investment per unit.
The sukuk has an issue size of Dh50 million, and trading activity may be limited. As a result, liquidity could affect how quickly investors can buy or sell the sukuk and whether they can transact at their preferred price.
A growing retail investment market
The listing marks the UAE Federal Government’s second retail sukuk, reflecting continued efforts to make government securities more accessible to individual investors while supporting the growth of the country’s Islamic finance market.
Retail-focused sukuk provide residents with a regulated fixed-income investment option alongside traditional savings products such as bank deposits. However, a sukuk is an investment rather than a bank deposit, and investors who sell before maturity may receive more or less than their original investment depending on prevailing market conditions.
